Historical development of portfolio theory

Portfolio theory occupies an essential place in modern finance, while portfolio management grounded on its achievements has been recognized as one of the main tasks of financial experts worldwide. Taking into account the previous, the research aims to understand the development process of portfolio theory profoundly and to familiarize the investment community with the basic features of each of its phases: traditional, modern, and post-modern portfolio theory, with inevitable comparative analysis of these theories and presentation of their positive and negative aspects. The rationale of implementing an analysis of the evolutionary process of portfolio theory lies in the intention to provide a systematic overview of the development of theoretical thought within this area and grounded on the belief that accumulated knowledge in the field of portfolio theory and portfolio management is one of the most valuable knowledge assets of contemporary society